Wesco

Wesco Distribution, Inc. – Case Assignment Questions

1. What is your action plan? Do you recommend that WESCO be proactive in managing its NA program or would you prefer that WESCO adopt a passive approach?

a. WESCO should definitely adopt a proactive approach in managing its NA program. A proactive approach in managing the NA program would definitely fulfill the company’s visions of becoming a $ 3 billion company with an average EBIT of over 5% by the year 2000 (from its 1996 figures of $ 2.2 billion company with an EBIT of around 3%.) Though the current position was not conducive to continue the program further, because the company was already at a loss of complete 2% in their revenue as compared in the previous year, still looking towards a long term prospective this program can gain higher margins if a planned strategy and proper segmentation of customers is created by the management. This would require the management to look in to the technicalities of the carious segments of customers and the values provided by the company to cater them.

2. Where and how does WESCO add value to its suppliers? Its customers?

b. WESCO is the leader in providing a wide range of services and procurement solutions that draw on its product knowledge, supply and logistics expertise and systems capabilities, enabling its customers to reduce supply chain costs and improve efficiency. These programs include: • National Accounts – They coordinate product supply and materials management activities for MRO supplies project needs and direct material for customers with multiple locations who seek purchasing leverage through a single electrical products provider; • Integrated Supply – They design and implement programs that enable its customers to significantly reduce the number of MRO suppliers they use through services that include highly automated, proprietary electronic procurement and inventory replenishment systems and on-site materials management and...